`


THERE IS NO GOD EXCEPT ALLAH
read:
MALAYSIA Tanah Tumpah Darahku

LOVE MALAYSIA!!!


 


Tuesday, March 10, 2015

My point of view on the 1MDB story – Tommy Thomas

Image result for 1mdb

I read, with interest, the cover story in the March 8 issue of The Edge, which was also published by The Malaysian Insider, of how 1MDB disbursed US$1 billion in 2009 to purchase a 40% stake in a joint venture company called IMDB PetroSaudi Ltd. 
On the assumption that everything stated in the cover story is true and accurate, and there is no reason to assume otherwise, I have some comments to make on the US$700 million loan (RM 2.59 billion) which was part of the US$1 billion which was alleged to have been made to 1MDB PetroSaudi Ltd, which then repaid it.  
I have prepared the following chronology of events on the loan transaction, based on your cover story, as mentioned below:
PetroSaudi Holdings (Cayman) Ltd, incorporates a company in Cayman Islands called IMDB PetroSaudi Ltd.  PetroSaudi Holdings (Cayman) Ltd is apparently the holding company, owning all its shares.
2) 25/9/2009
A Loan Agreement is entered into between the holding company, PetroSaudi Holdings (Cayman) Ltd and the company that it had incorporated 1 week previously, 1MDB PetroSaudi Ltd, whereby PetroSaudi Holdings (Cayman) Ltd agrees to “lend” US$700 million to 1MDB PetroSaudi Ltd. 
Hence, the lender/creditor in the transaction is PetroSaudi Holdings (Cayman) Ltd, which I shall therefore call the creditor, and the borrower/debtor is 1MDB PetroSaudi Ltd, which I shall call the debtor.
3) 28/9/2009
A Joint Venture Agreement is entered into between PetroSaudi Holdings (Cayman) Ltd and 1Malaysia Development Berhad (“1MDB”) to form a joint venture company, 1MDB PetroSaudi Ltd (that is, the company which had been incorporated 10 days earlier), with a 60:40 share-holding.  1MDB agreed to inject US$1 billion into the joint-venture company representing its 40% stake.  
This means that PetroSaudi (Cayman) Ltd was selling 40% of its shares in the joint-venture company to 1MDB for US$ 1 billion.
4) 29/9/2009
The Creditor demands that the Debtor repay the US$700 million “loan”.
5) 1/10/2009
The Debtor “repays” the “loan” of US$700 million by crediting that money to the account of one “Good Star Limited”.
If this Chronology of Events accurately summarises the dealings that took place in a two-week period between PetroSaudi Holdings (Cayman) Ltd and 1MDB, then the following observations can be made.
In order for a true and genuine “loan” transaction to have taken place on September 25, 2009 (Event No. 2), the Creditor must have actually disbursed/released the sum of US$700 million to the Borrower.  If it did, what happened to that money?  If did not pay out such monies, then it was not a loan,
With respects to the fourth point above, if it had been a genuine loan for which the demand was made for repayment, the loan would only have been for a duration of four days (from September 25 to 29), which defies credibility, particularly for a massive sum of US$700 million.   
What was the rate of interest? (or was it interest free because it was between related companies).  What was the purpose of the 4-day loan?  Because the demand was to “repay”, it presupposes the prior existence of a loan: in other words, the existence of a debtor/creditor relationship.  One does not repay unless there is already a pre-existing loan.
On the other hand, if it were a sham transaction, it was orchestrated and designed to give the impression, at least insofar as documentation is concerned, so as to provide justification for US$700 million to be disbursed by the debtor to the creditor by actually parting with money in that sum.
Bearing in mind that 1MDB is a company incorporated under the laws of Malaysia, it is required to comply with our laws (in addition to the laws of other jurisdictions like Cayman Islands and Seychelles).  Malaysian law imposes stringent conditions to ensure that monies belonging to a company are not siphoned out by its human agencies.
Thus, a company’s money cannot simply be paid out – it must be done in good faith and for a proper purpose. Causing a company to repay a non-existent loan is a serious breach of duty by directors and officers, for which they would be personally liable.
If it indeed was a sham transaction, it was executed blatantly and crudely, evidencing hubris.
* Tommy Thomas specialises in corporate, commercial & insolvency litigation.

3 comments:

  1. Hello Everybody, My name is.Mrs.Juliet Quin. I live in Canada and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $ 73,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of $ 73,000.00 Canada Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs.Juliet Quin that refer you to him. Contact Dr Purva Pius via email: reply to email (urgentloan22@gmail.com)

    Testimony On How My Life was Transform through the help of a Godsent Lender.. Hello everyone, I am Kathie Roper by name, am writing this Testimony because am really grateful for what Dr Purva Pius did for me and my family, when I thought there was no hope he came and make my family feel alive again by lending us loan at a very low interest rate of 3%. Well I have been searching for a loan to settle my debts for the past three months all I met scammed and took my money until I finally met a God sent Lender. I never thought that there are still genuine loan lenders on the internet but to my greatest surprise i got my loan without wasting much time so if you are out there looking for a loan of any amount i would advise you to email Dr Purva Pius via email:(urgentloan22@gmail.com) and be free of internet scams. thanks... Kathie Roper from California, USA.

    ReplyDelete
  2. Do you need a loan to consolidate your debt? Are you in need of a loan
    to finance or expand your business? or for car purchase, buying a
    house and other personal loans ETC we give long term loan for five to
    fifty years maximum with 3% interest. You are 100% Guaranteed.
    contact us via email reply to email (urgentloan22@gmail.com)
    BORROWERS APPLICATION DETAILS:
    Full Name:________________________
    Country:_________________________
    State:__________________________
    Sex:____________________________
    Date of Birth:______________________
    Home Address:______________________
    Amount Needed:______________________
    Loan Duration:_______________________
    Cell Phone:_________________________
    Monthly income:____________________
    Purpose for Loan:___________________
    Occupation:_________________________

    ReplyDelete
  3. My Brothers and Sister all over the world, I am Mrs Boo Wheat from Canada ; i was in need of loan some month ago. i needed a loan to open my restaurant and bar, when one of my long time business partner introduce me to this good and trustful loan lender DR PURVA PIUS that help me out with a loan, and is interest rate is very low , thank God today. I am now a successful business Woman, and I became useful. In the life of others, I now hold a restaurant and bar. And about 30 workers, thank GOD for my life I am leaving well today a happy father with three kids, thanks to you DR PURVA PIUS Now I can take care of my lovely family, i can now pay my bill. I am now the bread winner of my family. If you are look for a trustful and reliable loan leader. You can Email him via,mail (urgentloan22@gmail.com) Please tell him Mrs Boo Wheat from Canada introduce you to him. THANKS.

    ReplyDelete

Note: Only a member of this blog may post a comment.